Question
A debit balance in the Allowance for Doubtful Accounts Select one: a. cannot occur if the percentage of sales method of estimating bad debts is
A debit balance in the Allowance for Doubtful Accounts
Select one:
a. cannot occur if the percentage of sales method of estimating bad debts is used. cannot occur if the percentage of sales method of estimating bad debts is used.
b. indicates that actual bad debt write-offs have been less than what was estimated.
c. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.
d. is the normal balance for that account. ______________________________________________________________________________________
Tomko Company purchased machinery with a list price of $96,000. They were given a 10% discount by the manufacturer. They paid $600 for shipping and sales tax of $4,500. Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $30,000. If Tomko uses straight-line depreciation, annual depreciation will be
Select one:
a. $9,150.
b. $6,108.
c. $5,640.
d. $6,150.
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